1. Seeing the future through the trees 1 The Changing Face of Forestry The New Forest Owners Moderator: Troy Harris DANZERFORESTLAND

2. Seeing the future through the trees 2 2005/2006 News Headlines Boise to sell 2.2 million acres of timberland to Forest Capital Parnters for $1.65B IP completes $250M sale of 1.1 million acresof forestland in Maine, New Hampshire MeadWestvaco sells 900,000 acres of Timberland and paper business Hancock Timber Resource Group to acquire Prudential Timber Hancock Timber Resource Group to Acquire Timberland From Harvard University IP Agrees to Sell 5.1 Million Acres of U.S. Forestland For Approximately $6.1 Billion

3. Seeing the future through the trees 3 The New Forest Owners

4. Seeing the future through the trees 4 What’s a TIMO? Timberland Investment Management Organization (TIMO) represent financial instruments and institutions that purchase, manage, and sell timberland in order to organize and manage partnerships of institutional investors. TIMO’s currently: Manage over 23.9 million acres of timberland. Valued at over $19,200,000,000.

5. Seeing the future through the trees 5 What is a REIT? Real Estate Investment Trust’s (REIT) Security that sells like a stock on the major exchanges and invests in real estate directly. REIT’s receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. Timber REIT’s currently: –Manage over 14.5 million acres of timberland. –Valued at over $11,600,000,000.

6. Seeing the future through the trees 6 Who Is Selling and Who is Buying?

7. Seeing the future through the trees 7 Who Are the New Landowners?

8. Seeing the future through the trees 8 Meet the New Owners The TIMO Perspective: Michael Kelly (Executive Vice President, Chairman of Investment Committee) Chris Elwell (Investment Forester) The REIT Perspective: Jerry Barag (Managing Director) Jim Rundorff (Director Land Asset Management)

9. Seeing the future through the trees 9 The New Forest Owners